New Delhi, June 17: The government Wednesday launched its ‘Housing for All by 2022’ mission and approved a substantial increase in interest relief on loan for the urban poor to promote affordable homes.
The Union Cabinet chaired by Prime Minister Narendra Modi accepted the recommendations of an inter-ministerial committee to increase interest subvention to 6.50 per cent on housing loans to beneficiaries belonging to economically weaker sections (EWS), including slum-dwellers and low income groups (LIGs).
The Cabinet’s decision benefits urban poor by RS 2.30 lakh each and as a result of this, the monthly EMI would come down by RS 2,852 per month.
With the interest rate of 10.50 per cent, current EMI on admissible loan component of RS 6 lakh over a 15-year loan duration works out to be RS 6,632 per month, according to an official of the housing and urban poverty alleviation department.
With Cabinet deciding on credit-linked subsidy to be 6.50 per cent, EMI comes down to RS 4,050 per month, benefiting the urban poor by RS2,582 per month, he said.
Central assistance in the range of RS1 lakh to RS 2.30 lakh per beneficiary would be provided under different components of the National Urban Housing Mission in urban areas to build 2 crore new houses to meet the housing shortage over the next seven years.
As per the earlier approval of the Union Cabinet, there are four components to the National Urban Housing Mission. PTI
